Financial terminology sometimes makes us dizzy, right? This is completely understandable! That is why today we will try to explain the consumer loan agreement in a few simple points. We will answer the question, is it possible to repay a consumer loan in practice at all? Is it allowed to withdraw from the contract and who can take a consumer loan? What amount? What is the procedure for granting consumer credit? In what cases when the loan is not consumer? Let’s get started!
Consumer credit: definition
Are you wondering what a consumer loan actually is? What is its definition? The concept is explained by the Consumer Credit Act of May 12, 2011, according to which the maximum amount of consumer credit is $ 255 550. Optionally, if the consumer loan is taken in a foreign currency, it may be the equivalent of this sum in the appropriate currency. To sum up, the amount of consumer credit is determined by the relevant act. Moreover, it should be remembered that consumer credit, as its name implies, can only be taken by consumers.
Features of consumer credit
What features does consumer credit have in Poland? As mentioned earlier, we are talking about consumer credit if:
- the loan will not be higher than $ 255 550
- the loan will be for consumers only
Why is it important to know what consumer credit really is? Our awareness is of great importance for individual financial situation. How can we make a reasonable decision about entering into serious commitments if we do not know the basic concepts?
Who grants consumer credit?
We already know how much consumer credit is and what are its basic features. So now we face the basic question: who can grant a consumer loan? Bank? Loan company? In the bag with the inscription “consumer credit” you can put not only specific bank loans, but also specific loans granted by loan companies and savings an loan association, of course, provided that the products meet the assumptions of consumer credit.
Consumer credit: what to look for?
Are you wondering where it is best to take a consumer loan? What bank will hit the bull’s eye? Of course, you always need to carefully analyze the terms of the specific consumer loan you want to take out. What is worth paying attention to? When comparing individual offers, one should keep in mind, among others:
- consumer loan interest rate
- APRC of consumer credit
- consumer credit fees and commissions
- total cost of consumer credit
Of course, these are just some of the issues that should matter to us. How much a particular consumer loan costs is of great importance. We don’t need to remind you that you should make every financial decision sensibly, after having thought through all the pros and cons and compiling individual offers, right?
Withdrawal from the consumer loan agreement
Is it possible to opt out of a consumer loan? Want to know when you can withdraw from a consumer loan contract? You have up to 14 days to withdraw from the loan agreement. What’s more, it’s worth knowing that you don’t have to explain why you decided to take such a step.
Advantages and disadvantages of consumer credit
For our article you learned what consumer credit is and how it is defined by the relevant act. Remember that taking a consumer loan, regardless of the amount or repayment period, is a serious step, so make sure that your decision is sensible and thoughtful. Don’t take it lightly! Give me your financial security!